Deals this week: SEMAFO, GB Minerals, Barkerville Gold Mines

7 April 2016 (Last Updated April 7th, 2016 18:30)

Canadian mining company with gold operations in West Africa, SEMAFO has agreed to raise approximately C$100m ($76.63m) through bought deal offering of 23 million common shares at a price of C$4.35 ($3.33) per share.

Mining Deals

Canadian mining company with gold operations in West Africa SEMAFO has agreed to raise approximately C$100m ($76.63m) through bought deal offering of 23 million common shares at a price of C$4.35 ($3.33) per share.

SEMAFO has granted the underwriters, co-led by BMO Capital Markets Corp and Clarus Securities, a 30-day option to purchase up to an additional 15% of the offering to cover over-allotments, if any.

Subject to necessary regulatory approvals, the offering is expected to close on 22 April 2016.

Mining exploration and development company GB Minerals has agreed to raise $11.18m in a private placement of 265,328,536 new common shares at a price of CAD0.05 ($0.04) per share.

As part of the offering Zaff LP, an existing shareholder, will subscribe for the placement shares. Upon completion of the placement, it will own an aggregate of 387,551,929 common shares of GB Minerals representing 51.6% of the share capital.

Based in Canada, GB Minerals intends to use the net proceeds from the offering primarily develop its Farim phosphate mineral property, meet its financial obligations and operational commitments, and to fund litigation involving GBM Minerals Engineering Consultants.

Gold exploration company Barkerville Gold Mines has agreed to raise C$13.5m ($10.37m) in private placement of 19,290,000 flow-through shares, at a price of C$0.70 ($0.53) per flow-through share.

"Gold exploration company Barkerville Gold Mines has agreed to raise $10.37m in private placement of 19,290,000 flow-through shares."

The Canadian company has granted an option to a syndicate of underwriters led by Haywood Resources to acquire up to an additional 15% of the flow-through shares issuable under the offering.

The offering is expected to close on 26 April and is subject to completion of formal documentation and receipt of regulatory approvals, including the approval of the TSX Venture Exchange.

Junior exploration company Pioneer Resources has acquired through pegging a 100% interest in the Phillips River Lithium Project 100km east of the Mt Cattlin Lithium Mine, Ravensthorpe, Western Australia.

The Phillips River Lithium project comprises three exploration license applications covering approximately 340km².

Australian fund manager Taurus Fund Management has led a consortium into a sale and purchase agreement to acquire 70% interest in the Foxleigh Metallurgical Coal Mine located in Queensland, Australia, from Anglo American, a platinum producer based in the UK.

The deal will be effected through the sale of shares in the subsidiary companies holding Anglo American's interest in the Foxleigh Metallurgical Coal Mine, which is an open-cut coal operation producing pulverised coal injection (PCI) coal.


Image: SEMAFO has gold production and exploration activities in West Africa. Photo: courtesy of SEMAFO.